Aurizon Network Pty Limited
Aurizon Network Pty Limited
Debt Issuance Programme dated 4 October 2013
Dated 21 October 2013
Nature of the bonds
Direct, unsubordinated and unsecured obligations of the Issuer and will at all times rank at least equally with all other unsecured and unsubordinated obligations of the Issuer, except obligations mandatorily preferred by law.
5.75% per annum, payable semi-annually (in two coupons of 2.875%) in arrears on 28 April and 28 October in each year, including the Maturity Date.
Repayment at par on the maturity date
On the Maturity Date, bondholders are scheduled to...
- interest paid semi-annually in arrears;
- interest paid as 100% cash;
- interest is not deferrable nor are interest payments discretionary;
- rank equally with all other senior and unsecured creditors of the Issuer.
The value of an investment in Aurizon Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect Aurizon’s financial performance. The following risks may also affect an investment in Aurizon Bonds:
- Credit risks – associated with the Issuer and any Guarantors;
- Lack of liquidity – in the secondary market for Aurizon Bonds;
- Interest rate risks – bondholders may suffer unforeseen losses due to fluctuations in interest rates;
- Litigation risks – risks relating to litigation and regulatory actions;
- Default risk – if an event of default occurs under the Bonds, or Aurizon fails to perform any obligation in relation to the Bonds, such event or failure may impact on the value of an investment in the Bonds, the transferability of the Bonds and the ability of a holder to recover amounts due under the Bonds.
The Issuer will not create any security interest (other than certain Permitted Security Interests), over all or any of its assets, that exceeds in aggregate more than fifteen percent of the total assets at such time. Permitted Security Interests include certain property financings, rights of set-off, interests arising by operation of law, interests existing at time of an acquisition and interests that rank equally with the Bonds.
Early redemption by issuer
Yes, for tax reasons
Early redemption by bondholder
Bondholders can, in certain circumstances, redeem the bonds early if there is a Change of Control and subsequent credit rating downgrade.
Events of default
Events of Default include:
- Failure to Pay: Applicable with a 2 day cure period for non-payment of Principal and a 30 day cure period for non-payment of interest;
- Breach of Other Obligations: Applicable, with a 60 day cure period;
- Obligations Unenforceable: Applicable;
- Insolvency: Applicable;
- Cessation of Business: Applicable;
- Scheme of Arrangements/Compromise: Applicable, except for the purpose of a solvent reconstruction or amalgamation;
- Enforcement or Attachment: Applicable;
- Cross Default: Applicable, with Threshold Amount of A$50,000,000; and
- Loss of Licence/Authorisations: Applicable.